Ripple vs. SEC: Lawsuit Lingers, Political Donations Spark Debate, and XRP Price Faces Pressure

The Ripple lawsuit saga continues with political donation controversies, SEC appeal updates, and XRP price fluctuations. Get the latest insights and analysis.

Ripple vs. SEC: Lawsuit Lingers, Political Donations Spark Debate, and XRP Price Faces Pressure

The 'Ripple lawsuit, SEC, XRP' narrative is far from over. While Ripple claims the legal battle is 'behind them,' the SEC appeal, political donation scrutiny, and XRP's price volatility keep this crypto drama in the spotlight.

Political Donations Fuel Controversy

Recent buzz revolves around Ripple's alleged political leanings. Accusations of favoring Vice President Kamala Harris over Donald Trump in the 2024 election have ignited debate within the XRP community. These claims, circulating on X (formerly Twitter), question Ripple's political neutrality, especially given the significant support for Trump among XRP holders.

Adding fuel to the fire, some online voices suggested XRP holders might consider exiting their positions if Bitcoin surges past $125,000, hinting at potential market instability linked to these political affiliations.

SEC Timeline Defended

Former SEC lawyer Marc Fagel clarified that the Ripple lawsuit was initiated under the Trump administration, specifically by former SEC Chair Jay Clayton, not Gary Gensler. Fagel emphasized that the investigation and filing occurred before Gensler's appointment, dismissing claims of Gensler's involvement as factually incorrect.

Fagel explained that Clayton's decision to sue Ripple on his last day in office was likely a preemptive move to avoid delays that a new SEC chairman's confirmation could cause.

Ripple's $125 Million Payment and the Lingering Appeal

Ripple has fulfilled its $125 million penalty, paying in cash, not XRP, as some speculated. The funds are held in escrow until the appeal process concludes. The key sticking point remains the pending appeals from both Ripple and the SEC. Until these are officially withdrawn, the case cannot be fully closed.

Fagel suggests that the appeal withdrawal timeline depends on internal SEC votes and legal reviews, typically taking one to two months. Legal experts dismiss rumors of the U.S. government using XRP escrow for reserves, clarifying that escrowed XRP remains under Ripple’s control.

XRP Price Under Pressure

XRP's price is facing bearish pressure. Ripple co-founder Chris Larsen's transfer of 50 million XRP (approximately $170 million) to various wallets triggered investor unease, leading to significant sell-offs. Over 450 million XRP, worth over $2.8 billion, has been sold off in the past week.

XRP is currently trading around $3, struggling to break past a key resistance level between $3.18 and $3.25. However, there are signs of a possible rebound, with XRP recently bouncing from the $3.04 level and some indicators showing strength. Despite the short-term drop, XRP has been a top performer in 2025, gaining over 220 percent.

The WOO X Hack: A Reminder of Crypto Cybersecurity Risks

While not directly related to the Ripple case, the recent WOO X hack, resulting in a $14 million loss, underscores the ever-present cybersecurity threats in the crypto world. This incident, along with other recent exchange breaches, highlights the need for stronger onchain privacy and verification.

Final Thoughts

The Ripple vs. SEC saga is a multi-layered narrative involving legal battles, political intrigue, and market volatility. While the end may be in sight, the twists and turns continue to keep the crypto community on its toes. One thing's for sure, it's never a dull day in the world of crypto, is it?